\C3M1 


CO 

8 

o 
>- 


UC-NRLF 


$B    55    bM4 


BOOKKEEPING 

COMMISSION  AND 
GENERAL  MERCHANDISE 


GEORGE  W.MINER 


GINNAND  COMPANY 


7 J 


Digitized  by  the  Internet  Archive 

in  2007  with  funding  from 

Microsoft  Corporation 


http://www.archive.org/details/bookkeepingcommiOOminerich 


MOORE  AND  MINER  SERIES 


BOOKKEEPING 


COMMISSION 

AND 

GENERAL  MERCHANDISE 


BY 

GEORGE  W.  MINER 


GINN  AND  COMPANY 

BOSTON  •  NEW  YORK  •  CrflCAGO  •  LONDON 


>:•  i  * 


hF& 


COPYRIGHT,  1914,  BY 
GEORGE  W.  MINER 


ALL   BIGHTS   BESEBVED 
514.9 

EDUCATION  DEFT* 


gftc   fltfrenaenm   jMgM 

GINN  AND  COMPANY  •  PRO- 
PRIETORS •  BOSTON  •  U.S.A. 


PREFACE 

This  set  on  Commission  and  General  Merchandise  has  been  prepared 
to  meet  the  needs  of  those  schools  that  require  this  subject  in  the 
bookkeeping  course,  and  for  those  teachers  and  schools  that  wish  to 
use  independent  sets  for  reviews  or  for  advanced  work. 


54JM88 


CONTENTS 


PAGE 

COMMISSION  AND  GENERAL  MERCHANDISE 1 

MEMORANDA  OF  TRANSACTIONS      .     .    . 5 

COMMISSION  PROBLEMS 13 


BOOKKEEPING 

COMMISSION  AND   GENERAL 
MERCHANDISE   SET 


Object.  This  set  is  designed  to  illustrate  a  simple  method  of  handling 
consignments  in  connection  with  a  stock  of  merchandise. 

A  Consignment  consists  of  the  goods  received  to  be  sold. 

The  Consignor  is  the  one  (usually  the  owner)  who  sends  or  delivers  the 
goods  to  the  consignee. 

The  Consignee  is  the  one  to  whom  the  goods  (the  consignment)  are 
sent  or  delivered. 

A  Commission  Merchant  is  the  one  who  sells  the  goods  received  from  the 
consignor,  and  makes  returns  for  the  same. 

Commission  is  the  sum  received  by  the  commission  merchant,  or  agent,  for 
his  service  in  selling  consignments ;  it  is  usually  a  certain  per  cent  of 
the  sales. 

The  goods  that  are  entered  as  a  consignment  by  the  consignee  are 
treated  as  a  shipment  by  the  consignor. 

The  commission  merchant  is  responsible  for  all  consignments  sold 
on  account. 

No  business  forms  are  to  be  used  in  this  set. 

In  the  text,  reference  is  made  to  various  business  forms,  but  all  of  these  refer- 
ences are  to  be  considered  as  aids  to  the  student  in  making  the  required  entries. 
For  instance,  if  the  statement  is  made  for  the  student  to  render  an  account  sales, 
the  form  is  not  to  be  written ;  only  the  entries  relating  to  the  transaction  are  made 
by  the  student. 

Books.    The  following  books  will  be  used  in  this  set : 
The  Cashbook,  in  which  are  entered  all  cash  items. 

The  illustration  sets  forth  the  plan  of  this  book.  On  the  left  side  special  columns 
are  provided  for  Merchandise  and  Consignments  sold  for  cash,  the  amounts  coming 
from  the  cash  sales  book  at  the  close  of  each  day.  On  the  right  side  special  columns 
are  provided  for  Commission  and  Consignments.  The  columns  marked  General  are 
used  as  in  an  ordinary  cashbook.  The  posting  of  the  cashbook  will  be  explained  in 
the  course  of  the  set. 

The  model  cashbook  is  given  on  pages  2  and  3. 

1 


,2: ; 


BOOKKEEPING 


Model  Cashbook  —  Cash  Receipts 


DATE 

L.F. 

NAME  OF  ACCT. 

EXPLANATION 

MDSE. 

CONS. 

GENERAL 

19— 

July 

6 
6 

1 
1 

Student 
A.  R.  Jones 

Investment 
Investment 

1500 
1500 

7 

V 

Mdse. 

Cash  sales 

34 

75 

7 

V 

Cons. 

«        « 

5G 

70 

8 

5 

A.  Morris 

On  account 

256 

20 

8 

V 

Mdse. 

Cash  sales 

143 

55 

8 

V 

Cons. 

"       " 

117 

25 

1 

9 

6 

Lewis  King 

On  account 

58 

90 

9 

V 

Mdse. 

Cash  sales 

98 

50 

9 

V 

Cons. 

<t        « 

84 

20 

10 
10 
10 

4 
1 
2 

John  Park 

Mdse. 

Cons. 

On  account 

Total 

Total 

175 
276 
258 

276 

80 

80 

258 

15 

15 

4025 

05 

Receiving,  or  Commission,  Book.  In  this  book  are  recorded  all  consign- 
ments received,  each  being  given  a  lot  number,  and  by  this  number  all 
transactions  relating  to  the  consignment  are  identified.  The  name  and 
the  address  of  the  consignor  are  recorded,  together  with  a  statement  of 
the  goods  received,  the  freight  charges,  etc. 

Many  different  forms  are  used  for  recording  consignments.  Some  houses  use  a 
sales  book,  on  the  left  side  of  which  are  entered  the  goods  received  and  all  charges 
thereon;  on  the  right  side  all  sales  are  entered;  others  use  a  loose-leaf  ledger,  a 
sheet  which  has  columns  for  recording  all  items  pertaining  to  a  given  consignment. 

Commission  merchants  use  a  stamp  or  a  stencil  for  marking  all  consignments 
received,  never  using  the  name  of  the  consignor,  as  the  merchant  does  not  wish  to 
reveal  the  names  of  his  consignors.  The  mark  may  be  a  number  or  a  letter  or  a 
symbol  or  some  combination  of  these. 

When  a  consignment  is  received  it  is  set  apart  by  itself  or  placed  in  a  stall  and 
immediately  marked.  This  enables  a  merchant  to  identify  any  consignment  and  to 
credit  all  sales  properly. 

The  posting  of  the  receiving  book  will  be  explained  at  the  close  of  the 
second  day's  business,  in  the  set. 


Model  Receiving  Book,  July  7,  19 — 

LOT  NO. 

L.F. 

63 
64, 

John  R.  Lane,  Flushing 
60  bbl.  Potatoes  —  Freight 
Car  #6754,  N.Y.,  N.H.  &  H.R.R. 
7 

A.  D.  Mathews,  Hempstead 
40  bags  Onions  —  Freight 
Car  #4321,  N.Y.  Cent.  R.R. 

6 

4 

25 

10 

25 

COMMISSION  SET 


A  !     Wti 


Model  Cashbook  —  Cash  Payments 


DATE 

L.F. 

NAME  OF  ACCT. 

EXPLANATION 

COMM. 

CONS. 

GENERAL 

19- 

July 

6 
6 

7 

2 
2 
3 

Office  Fixt. 
Horse  &  Wagon 
Expense 

Books,  etc. 
Delivery 
Rent,  1  mo. 

28 
190 
65 

75 

8 

5 

Lowe  &  Co. 

Acct.  Sales 

5 

80 

284 

20 

8 

1 

Mdse. 

Kane  &  Co. 

850 

9 

3 

Expense 

10 

50 

9 

5 

H.  B.  Ware 

Acct.  Sales 

7 

09 

347 

41 

10 

10 

3 
2 
3 

Expense 
Cons. 

To  Comm. 

Salaries 

30 

12 

89 

631 

61 

10 

2 

Cons. 

Net 

631 

61 

10 

Balance 

In  Bank 

2219 

19 

4025 

05 

Time  Sales  Book.  In  this  book  are  recorded  all  goods  sold  on  account. 
In  the  first  column  is  extended  the  amount  of  each  sale,  and  if  the  sale 
is  accompanied  by  a  consignment  number  the  amount  is  also  written  in 
the  column  marked  Cons.-,  but  if  it  is  not  accompanied  by  a  consignment 
number,  then  the  amount  is  written  in  the  column  marked  Mdse.  The 
posting  of  this  book  is  explained  at  the  close  of  July  7,  and  the  posting 
of  the  footings  is  explained  at  the  end  of  the  week,  July  11. 

Model  Time  Sales  Book,  July  7,  19 — 


LOT  NO. 

L.F. 

AMOUNT 

CONS. 

MDSE. 

63 
64 
65 

7 

9 

1 

2 

Amos  Bond,  on  acct. 

20  bbl.  Potatoes                        21° 
5  bags  Onions                           3_ 
50  Melons                                  30^ 

10 
David  Jordan,  on  acct. 

50  Melons                                  300 
20  bbl.  Potatoes                       2§o 
5  bags  Onions                           31? 

To  Cons. 
To  Mdse. 

48 
15 
15 

48 
15 
15 

15 
15 

50 

52 

78 

65 
69 

15 
52 
15 

50 

82 

50 

108 

50 

52 

Cash  Sales  Book.  In  this  book  are  recorded  all  cash  sales,  each 
amount  being  extended  into  either  the  column  marked  Cons,  or  the 
column  marked  Mdse.  This  book  is  closed  and  posted  at  the  end  of 
each  day.    The  posting  is  explained  at  the  close  of  July  8. 


BOOKKEEPING 


Model  Cash  Sales  Book,  July  8,  19 — 


LOT  NO. 

L.F. 

CONS. 

MDSE. 

63 
64 

6 

S.  B.  Wren 
40  bbl.  Potatoes                                              2™ 
10  bags  Onions                                                2?i5 
10  bbl.  Potatoes                                              2^ 

To  Cons. 

To  Mdse. 

100 
29 

50 

25 

129 

50 

25 

Consignment  Ledger.  This  ledger  is  used  in  addition  to  the  general, 
or  main,  ledger  and  in  connection  with  it,  and  shows  a  detailed  record 
of  each  consignment. 

If  a  second  consignment  is  received  from  the  same  person,  a  second  account  must 
be  opened  with  it,  as  the  consignment  ledger  must  have  an  account  with  each  sepa- 
rate consignment  received.  These  consignments  are  all  identified  by  the  particular 
number  given  when  each  was  received  and  entered  in  the  receiving  book. 

The  posting  to  this  ledger  is  explained  under  July  7,  page  6. 


Model  Consignment  Ledger 


JOHN  R.  LANE     F,ushing 


19— 
July 


19— 

Lot  #63 

60  bbl.  Potatoes 

2 

July 

7 
8 

Freight 

Com. 

Net  Proceeds 

7 
7 

6 

14 
127 

80 
20 

148 

20  bbl. 
40  bbl. 
60  bbl. 


240 


48 
100 


148 


Main,  or  General,  Ledger.   This  ledger  corresponds  to  the  ledger  used 
in  each  of  the  preceding  sets. 

No  journal  will  be  used  in  this  set,  as  no  notes  are  handled  and  all  purchases  are 
for  cash. 


An  Account  Sales  is  a  statement  rendered  by  the  consignee  to  the  con- 
signor, giving  a  detailed  report  of  a  given  consignment ;  it  is,  in  fact,  a 
duplicate  of  the  record  found  in  the  consignment  ledger. 


COMMISSION  SET 


Model  Account  Sales 

Springfield,  July  9,    19 — 

Sold  for  Account  of 

Mr.   John  R.   Lane,   Flushing,   L.I. 

COLBURN  &  BRENNAN 

COMMISSION  MERCHANTS  AND  DEALERS  IN 

GENERAL  MERCHANDISE 

210  MAIN  STREET 


July 
July 


Rec'd  60  bbl.  Potatoes 

Sales 


20  bbl. 
40     " 


2.40 
2.50 


Charges 


Freight 
Cartage 

Commission  10% 
Net  proceeds 


48 
100 


6 
14 


80 


148 


20 


127 


80 


20 


MEMORANDA  OF  TRANSACTIONS 

Monday,  July  6 

Student  and  James  N.  Lee  have  this  day  formed  a  partnership  for  the 
purpose  of  conducting  a  Commission  and  General  Merchandise  business, 
at  210  Main  Street,  under  the  firm  name  of  Student  &  Lee,  each  partner 
investing  cash  $1000. 

Enter  in  the  cashbook,  investment.    (See  model,  pages  2-3.) 

Student  will  have  charge  of  the  books,  and  Mr.  Lee  will  superintend  the  business. 

Engage  James  Downey  as  delivery  man,  at  $10  per  week. 

No  entry  for  this  engagement. 

In  this  set  it  is  assumed  that  a  bank  account  is  kept  and  all  payments  made  by 
check. 

Give  Morand  &  Co.  a  check  for  $210,  in  payment  for  a  horse,  a  wagon, 
and  a  set  of  harness. 

Enter  in  the  cashbook  under  Horse  and  Wagon  account. 

Give  Andrew  N.  Gray  a  check  for  $50,  in  payment  of  the  rent  of  the 
store  for  1  mo. 

Give  Naples  &  Co.  a  check  for  $28.50,  for  a  bill  for  office  books. 
Enter  in  the  cashbook  under  Expense. 


6  BOOKKEEPING 

Give  Lamar  &  Son  a  check  for  $32,  in  payment  for  1  office  desk. 
Charge  to  Office  Fixtures. 

Give  Macy  &  Cooper  a  check  for  $9.50,  for  stationery  and  office 
supplies. 

Enter  in  the  cashbook  under  Expense. 

Post  the  day's  work.  All  the  preceding  entries  have  been  recorded  in  the  cash- 
book,  and  should  be  posted  to  their  respective  accounts  in  the  main  ledger]  allow 
for  each  account  one  fourth  of  a  page. 

Tuesday,  July  7 

Receive  of  John  R.  Lane,  Flushing,  60  bbl.  Potatoes,  to  be  sold  on 
his  account;  N.Y.,  N.H.  &  H.R.R.,  car  #6754.    Freight,  $6. 

Enter  in  the  receiving  book,  Lot  No.  63.    (See  model,  page  2.) 

All  freight  bills  will  be  paid  at  the  end  of  each  week  to  the  Ellis  Carting  Co. 

Receive  of  A.  D.  Mathews,  Hempstead,  40  bags  Onions,  to  be  sold  on 
his  account;  N.Y.  Cent.  R.R.,  car  #4321.    Freight,  $4.25. 

A  bag  of  onions,  as  used  in  this  set,  weighs  100  lb. 
Continue  the  lot  numbers  in  regular  order,  this  being  No.  64. 

Receive  of  Loomis  &  Son,  Macon,  500  Melons,  to  be  sold  on  their 
account;  N.Y.  Cent.  R.R.,  car  #65,789.    Freight,  $27.50. 

Sell  Amos  Bond,  City,  on  account:  20  bbl.  Potatoes,  lot  No.  63,  at 
$2.40 ;  5  bags  Onions,  lot  No.  64,  at  $3 ;  50  Melons,  lot  No.  65,  at  3(ty. 

Enter  in  the  time  sales  book.    (See  model,  page  3.) 

Post  the  day's  work.  In  the  consignment  ledger  open  an  account  with  each  con- 
signment that  has  been  entered  in  the  receiving  book,  recording  the  items  on  the 
debit  side,  as  follows  :  the  lot  number,  the  quantity,  and  the  freight.  Allow  for  each 
account  one  fourth  of  a  page. 

Refer  to  the  model  consignment  ledger,  page  4. 

The  time  sales  book :  open  an  account  in  the  main  ledger,  and  debit  Amos  Bond 
for  the  full  amount  of  the  first  sale,  this  amount  being  recorded  in  the  first  money 
column  of  the  time  sales  book. 

Credit  each  consignment  account,  in  the  consignment  ledger,  for  the  goods  sold  for 
that  consignment,  the  lot  number  in  the  sales  book  being  the  guide  for  the  posting 
of  each  amount.  The  page  of  the  consignment  ledger  is  placed  at  the  left  of  each 
amount  posted  from  the  sales  book. 

This  concludes  the  posting  for  the  day. 

Wednesday,  July  8 
Give  Aaron  A.  Bird  a  check  for  $105,  in  payment  for  50  bbl.  Potatoes. 

Enter  in  the  cashbook  under  Mdse.  in  the  general  column. 

This  is  not  a  consignment,  but  a  part  of  the  merchandise  stock  carried  by 
the  firm. 


COMMISSION  SET  7 

Receive  of  Bardwell  &  Co.,  Flushing,  40  bbl.  Potatoes,  to  be  sold  on 
their  account;  N.Y.  Cent.  R.R.,  car  #5643.    Freight,  $4. 

Receive  of  Lawrence  &  Son,  Jamaica,  30  bbl.  Potatoes,  to  be  sold  on 
their  account ;  N.Y.,  N.H.  &  H.R.R.,  car  #24,365.    Freight,  $3.10. 

Sell  S.  B.  Wren,  City,  for  cash:  40  bbl.  Potatoes,  lot  No.  63,  at  $2.50 ; 
10  bags  Onions,  lot  No.  64,  at.  $2.95 ;  10  bbl.  Potatoes  at  f  2.50. 

Enter  in  the  cash  sales  book,  the  first  two  amounts  being  extended  into  the  con- 
signment column,  and  the  third  amount  into  the  merchandise  column.  (See  model, 
page  4.) 

Post  the  day's  work.  The  Mdse.  amount,  in  the  cashbook,  should  be  posted  to 
the  main  ledger ;  the  two  consignments,  Bardwell  &  Co.  and  Lawrence  &  Son,  should 
be  posted  to  the  consignment  ledger. 

Rule  the  cash  sales  book  as  shown  in  the  model,  page  4,  and  on  the  left  side  of 
the  cashbook  enter  the  footing  of  the  consignment  column  of  the  sales  book  in  the 
Cons,  column ;  the  footing  of  the  merchandise  column  is  carried  to  the  left  side  of 
the  cashbook,  in  the  Mdse.  column.  Credit  the  consignments,  in  the  consignments 
ledger,  with  the  amounts  in  the  cash  sales  book ;  remember  the  lot  number  is  the 
guide  for  this  posting. 

This  book  must  be  closed  and  the  footings  posted  each  day. 

Thursday,  July  9 

Render  an  account  sales  of  John  R.  Lane's  consignment,  No.  63,  and 
send  him  a  check  for  the  net  proceeds. 

Refer  to  Lane's  account  in  the  consignment  ledger;  the  total  sales  amount  to 
$148 ;  the  commission  at  10%,  $14.80 ;  the  net  proceeds  (total  sales  minus  the 
commission  and  the  freight),  $127.20. 

Enter  in  the  cashbook,  recording  the  commission  in  the  column  marked  Comm. 
and  the  net  proceeds  in  the  column  marked  Cons.  (See  fourth  entry  in  the  model 
cashbook,  right  side,  page  3.) 

The  regular  commission  charge  in  this  set  will  be  10%. 

Sell  Beatty  &  Co.,  City,  on  account :  15  bags  Onions,  lot  No.  64,  at  $3  ; 
100  Melons,  lot  No.  6b,  at  25<£;  20  bbl.  Potatoes,  lot  No.  66,  at  $2.35. 

Enter  in  the  time  sales  book. 

Receive  a  check  from  Amos  Bond  for  the  amount  of  the  invoice  sold 
him  on  July  7. 

Enter  in  the  cashbook  in  the  general  column. 

Sell  Henry  M.  Lord,  City,  for  cash:  10  bags  Onions,  lot  No.  64,  at 
$2.75 ;  100  Melons,  lot  No.  65,  at  25<£. 

Enter  in  the  cash  sales  book. 


8  BOOKKEEPING 

Receive  of  John  R.  Lane,  Flushing,  40  bbl.  Potatoes,  to  be  sold  on 
his  account;  N.Y.,  N.H.  &  H.R.R.,  car  #7846.    Freight,  $5.20. 

Post  the  day's  work ;  if  necessary,  refer  to  preceding  directions  for  posting. 

Remember,  the  cash  sales  book  is  closed  every  day,  and  all  the  amounts  represented 
by  lot  numbers,  in  either  sales  book,  must  be  posted  to  the  consignment  ledger. 

Close  Lane's  account,  consignment  No.  63,  entering  the  commission  and  the  net 
proceeds  on  the  debit  side ;  rule  and  foot  the  account,  as  it  balances. 

Friday,  July  10 

Render  an  account  sales  of  A.  D.  Mathews's  consignment,  No.  64, 
sending  him  a  check  for  the  net  proceeds. 

Receive  of  E.  D.  Snow,  Hempstead,  20  bags  Onions,  to  be  sold  on 
his  account;  N.Y.  Cent.  R.R.,  car  #67,894.    Freight,  $2.75. 

Receive  of  Croton  &  Co.,  Atlanta,  100  Melons,  to  be  sold  on  their 
account;  Southern  R.R.,  car  #3269.    Freight,  $9.40. 

Give  John  Dunn  a  check  for  $10,  for  carpenter  work  in  the  store. 

Charge  to  Expense. 

Sell  David  Jordan,  City,  on  account :  50  Melons,  lot  No.  65,  at  300 ; 
20  bbl.  Potatoes  at  $2.60 ;  5  bags  Onions,  lot  No.  69,  at  $3.10. 

Sell  E.  D.  Cashman,  City,  for  cash,  50  Melons,  lot  No.  70,  at  300. 

Sell  Lester  Ford,  City,  on  account,  100  Melons,  lot  No.  65,  at  250. 

Sell  Samuel  E.  Fell,  City,  for  cash:  10  bbl.  Potatoes,  lot  No.  67,  at 
$2.60 ;  5  bbl.  Potatoes,  lot  No.  68,  at  $2.40. 

Receive  of  Beatty  &  Co.,  a  check,  for  the  invoice  of  July  9. 

Sell  Walter  M.  Davis,  City,  on  account,  100  Melons,  lot  No.  65,  at  250. 

Sell  Chester  Willis,  City,  for  cash,  10  bbl.  Potatoes,  lot  No.  66,  at  $2.50. 

Post  the  day's  work.    Close  Mathews's  account,  consignment  No.  64. 

Saturday,  July  11 

Render  an  account  sales  of  Loomis  &  Son's  consignment,  No.  65, 
sending  them  a  check  for  the  net  proceeds. 

Sell  Amos  Bond,  City,  on  account:  20  bbl.  Potatoes,  lot  No.  68,  at 
$2.50  ;  10  bags  Onions,  lot  No.  69,  at  $3  ;  25  Melons,  lot  No.  70,  at  250. 

Sell  Beatty  &  Co.,  City,  for  cash,  20  bbl.  Potatoes,  lot  No.  67,  at  $2.60. 

Receive  of  A.  D.  Mathews,  Hempstead,  30  bags  Onions,  to  be  sold  on 
his  account;  N.Y.  Cent.  R.R.,  car  #98,501.    Freight,  $3.25. 

Receive  a  check  from  David  Jordan,  for  the  amount  of  the  invoice  of 
July  10. 

Sell  James  Goodwin,  City,  on  account,  10  bbl.  Potatoes,  lot  No.  66, 
at  $2.50. 


COMMISSION  SET  9 

Sell  Alfred  B.  Jones,  City,  on  account,  10  bbl.  Potatoes,  lot  No.  68, 
at  $2.50. 

Give  James  Downey,  clerk,  a  check  for  $10. 

Charge  to  Expense. 

Pay  freight  bills  for  the  week  by  check,  to  Ellis  Carting  Co.,  $65.45 ; 
this  amount  is  the  footing  of  the  receiving  book. 

Enter  in  the  cashbook  in  the  Cons,  column. 

This  sum  is  charged  to  consignments,  as  it  represents  a  payment  on  that  account. 

Post  the  day's  work.  Close  the  time  sales  book  (see  model,  page  3),  and  post 
the  footing  of  the  Cons,  column  to  the  credit  of  consignments,  and  the  footing  of 
the  Mdse.  column  to  the  credit  of  Merchandise,  in  the  main  ledger. 

Close  Loomis  and  Co.'s  account,  consignment  No.  65. 

Monday,  July  13 

Render  an  account  sales  of  Bard  well  &  Co.'s  consignment,  No.  6Q, 
sending  them  a  check  for  the  net  proceeds. 

Render  an  account  sales  of  Lawrence  &  Son's  consignment,  No.  67, 
sending  them  a  check  for  the  net  proceeds. 

Give  Homer  C.  Bush  a  check  for  $52.50,  in  payment  for  25  bags  Onions. 

Charge  to  Mdse. 

Sell  David  Jordan,  City,  on  account:  5  bbl.  Potatoes,  lot  No.  68,  at 
$2.40  ;  5  bags  Onions  at  $3. 

Give  John  C.  Young  a  check  for  $110,  in  payment  for  10  tubs,  500  lb., 
Elgin  Creamery  Butter,  at  220. 

Receive  of  John  R.  Lane,  Flushing,  100  bbl.  Potatoes,  to  be  sold  on 
his  account;  N.Y.  Cent.  R.R.,  car  #5694.    Freight  $10. 

Sell  D.  J.  Mason,  City,  on  account:  10  Melons,  lot  No.  70,  at  280; 
2  tubs,  100  lb.,  Elgin  Creamery  Butter,  at  300. 

Student  and  James  N.  Lee,  proprietors,  each  withdraw  by  check  ^75, 
for  personal  use. 

Post  the  day's  work.  Close  Bardwell  &  Co.'s  account,  consignment  No.  66 ;  also 
Lawrence  &  Son's  account,  consignment  No.  67. 

Tuesday,  July  14 

Render  an  account  sales  of  John  R.  Lane's  consignment,  No.  68, 
sending  him  a  check  for  the  net  proceeds. 

Receive  cash  of  Lester  Ford,  in  full  of  account. 

Sell  James  Goodwin,  City,  on  account :  50  bbl.  Potatoes,  lot  No.  72, 
at  $2.60 ;  10  bags  Onions,  lot  No.  71,  at  $2.90. 


10  BOOKKEEPING 

Sell  Daniel  Osgood,  City,  for  cash :  10  Melons,  lot  No.  70,  at  23<£ ;  3 
tubs,  150  lb.,  Elgin  Creamery  Butter,  at  280 ;  10  bbl.  Potatoes  at  $2.60. 

Receive  of  Bardwell  &  Co.,  Flushing,  25  bbl.  Potatoes,  to  be  sold  on 
their  account;  N.Y.  Cent.  R.R.,  car  #74,823.    Freight,  $ 2.90. 

Give  Aaron  R.  Bird  a  check  for  $208.50,  hi  payment  for  100  bbl. 
Potatoes. 

Sell  Lester  Ford,  City,  on  account :  5  bags  Onions,  lot  No.  69,  at  $3 ; 
20  bbl.  Potatoes  at  $2.55  ;  3  tubs,  150  lb.,  Elgin  Creamery  Butter,  at  300. 

Receive  cash  of  Walter  M.  Davis,  hi  full  of  account. 

Post  the  day's  work.    Close  Lane's  account,  consignment  No.  68. 

Wednesday,  July  15 

Render  an  account  sales  of  Croton  &  Co.'s  consignment,  No.  70,  sending 
them  a  check  for  the  net  proceeds. 

In  this  consignment  5  melons  were  spoiled  in  shipping,  so  that  the  sale  of  95 
melons  closes  the  consignment.    Indicate  this  fact  in  the  Consignment  account. 

Render  an  account  sales  of  E.  D.  Snow's  consignment,  No.  69,  sending 
him  a  check  for  the  net  proceeds. 

Receive  of  E.  D.  Snow,  Hempstead,  50  bags  Onions,  to  be  sold  on  his 
account;  N.Y.  Cent.  R.R.,  car  #679.    Freight,  $6.25. 

Give  John  C.  Young  a  check  for  $200,  in  payment  for  20  tubs, 
1000  lb.,  Elgin  Creamery  Butter,  at  20<£. 

Receive  of  James  Goodwhi  a  check  for  the  amount  of  the  invoice  sold 
him  on  July  11. 

Post  the  day's  work.  Close  Croton  &  Co.'s  account,  consignment  No.  70 ;  also 
E.  D.  Snow's  account,  consignment  No.  69. 

Thursday,  July  16 

Sell  Walter  M.  Davis,  City,  on  account,  50  bbl.  Potatoes,  lot  No.  72, 
at  $2.60. 

Receive  of  Alfred  Jones  a  check  for  the  amount  of  the  invoice  sold 
him  on  July  11. 

Sell  Beatty  &  Co.,  City,  on  account :  10  bags  Onions,  lot  No.  71,  at 
$3.05 ;  15  bbl.  Potatoes,  lot  No.  73,  at  $2.40. 

Receive  of  D.  J.  Mason  a  check  for  the  amount  of  the  invoice  sold 
him  on  July  13. 

Sell  Smith  Bros.,  City,  for  cash:  25  bbl.  Potatoes  at  $2.60;  6  tubs, 
300  lb.,  Elgin  Creamery  Butter,  at  30<£. 

Receive  cash  of  Lester  Ford,  on  account,  $100. 


COMMISSION  SET  11 

Sell  Alfred  Jones,  City,  on  account:  10  bags  Onions,  lot  No.  74/ at 
$3.05 ;  10  bbl.  Potatoes,  lot  No.  73,  at  $2.55. 

Post  the  day's  work. 

Friday,  July  17 

Render  an  account  sales  of  John  R.  Lane's  consignment,  No.  72,  sending 
him  a  check  for  the  net  proceeds. 

Receive  of  Hildebrand  &  Co.,  Hempstead,  1  carload,  120  bbl.,  Potatoes, 
to  be  sold  on  their  account;  N.Y.  Cent.  R.R.,  car  #5679.    Freight,  $12. 

Render  an  account  sales  of  Bardwell  &  Co.'s  consignment,  No.  73, 
sending  them  a  check  for  the  net  proceeds. 

Sell  Merrick  &  Johnson,  City,  for  cash :  15  bbl.  Potatoes  at  $2.50 ; 
4  tubs,  200  lb.,  Elgin  Creamery  Butter,  at  31<£ ;  5  bags  Onions  at  $3. 

Receive  a  check  of  Amos  Bond,  on  account,  $50. 

Receive  a  check  of  James  Goodwin,  on  account,  $100. 

Sell  Bruce  Wilson,  Springfield,  for  cash,  the  carload  of  Potatoes,  lot 
No.  75,  received  this  morning  from  Hildebrand  &  Co.,  at  $2.40.  As  the 
car  has  not  been  unloaded  it  is  forwarded  at  once. 

Receive  a  check  from  Bruce  Wilson  for  the  carload  of  Potatoes. 

Receive  of  John  R.  Lane,  Flushing,  60  bbl.  Potatoes,  to  be  sold  on 
his  account;  N.Y.  Cent.  R.R.,  car  #6400.    Freight,  $6.85. 

Receive  of  Croton  &  Co.,  Atlanta,  100  Melons,  to  be  sold  on  their 
account;  N.Y.  Cent.  R.R.,  car  #5023.    Freight,  ^5.65. 

Sell  D.  J.  Mason,  City,  on  account,  10  bags  Onions,  lot  No.  71,  at  $3. 

Post  the  day's  work.  Close  John  R.  Lane's  account,  consignment  No.  72 ;  also 
Bardwell  &  Co.'s  account,  consignment  No.  73. 

Saturday,  July  18 

Render  an  account  sales  of  A.  D.  Mathews's  consignment,  No.  71, 
sending  him  a  check  for  the  net  proceeds. 

Receive  of  Howard  &  Son,  Jamaica,  1  carload,  120  bbl.,  Potatoes,  to 
be  sold  on  their  account;  N.Y.  Cent.  R.R.,  car  #465.    Freight,  $12.50. 

Render  an  account  sales  of  Hildebrand  &  Co.'s  consignment,  No.  75, 
sending  them  a  check  for  the  net  proceeds. 

Sell  Amos  F.  Aldrich,  City,  for  cash :  10  bbl.  Potatoes  at  $2.60 ; 
10  bags  Onions,  lot  No.  74,  at  $3. 

Give  James  Downey  a  check  for  1  week's  salary,  $10. 

Pay  freight  bills  for  the  week  by  check  to  Ellis  Carting  Co.,  $56.15. 

Post  the  day's  work.    Close  the  time  sales  book  and  post  it. 
Rule  and  foot  the  receiving  book. 


12  BOOKKEEPING 

Close  A.  D.  Mathews's  account,  consignment  No.  71 ;  also  Hilclebrand 
&  Co.'s  account,  consignment  No.  75. 

Rule  and  foot  the  cashbook,  following  the  form  and  arrangement  of  the  model 
cashbook,  pages  2  and  3.  In  finding  the  balance  of  cash  do  not  count  in  the  Comm. 
column,  as  this  does  not  represent  cash  paid  out. 

On  the  left  side,  post  the  footing  of  the  Mdse.  column  to  the  credit  of  Merchandise, 
and  the  footing  of  the  Cons,  column  to  the  credit  of  Consignments. 

On  the  right  side,  the  footing  of  the  Comm.  column  is  posted  as  a  journal  entry, 
debiting  Consignments  and  crediting  Commission ;  the  footing  of  the  Cons,  column  is 
posted  to  the  debit  of  Consignments. 

After  the  posting  is  completed,  hand  all  books  to  the  instructor  for  inspection 
and  approval. 

Inventories,  July  18,  19 — 

Merchandise : 

40  bbl.  Potatoes  at  $2  $80. 

15  bags  Onions  at  #2.40  36. 

12  tubs,  600  lb.,  Butter,  at  210  126.         #242. 

Horse  and  Wagon : 

Cost  $210. 

Depreciation  10.         $200. 

Office  Fixtures : 

Cost  $32. 

Depreciation  5.50     $26.50 

Expense : 

Office  Books  and  Supplies  $28.50 

Depreciation  5.00     $23.50 

Take  a  trial  balance  of  the  main  ledger  and  submit  it  to.  the  instructor 
for  approval. 

Take  an  abstract  of  the  consignment  ledger  and  submit  it  to  the 
instructor  for  approval. 

Make  the  two  statements.  In  the  resource  and  liability  statement  the 
Consignment  account  appears  as  a  liability. 

Hand  the  statements  to  the  instructor  for  approval. 

Note.   If  the  ledger  is  closed  by  journal  entry,  record  the  entry  on  page  1,  blank  #1. 

Close  the  ledger ;  divide  the  net  gain  equally  between  the  partners. 
Hand  all  books  to  the  instructor. 


COMMISSION  PROBLEMS  13 

COMMISSION  PROBLEMS 

Directions.  Perform  the  required  work,  then  hand  it  to  the  instructor 
for  inspection  and  approval. 

When  an  account  sales  is  called  for  in  any  of  these  problems,  duplicate  the 
form  given  on  page  5. 

1.  James  N.  Jackson,  a  commission  merchant,  has  sold  the  following  con- 
signment for  George  H.  Harmon  : 

60  bu.  Potatoes  at  840 
35  bags  Onions  at  $2.40 
25  bbl.  Melons  at  $3.60 

Jackson  paid  the  freight,  $6.20,  and  deducted  his  commission  at  5%  ;  find 
the  net  proceeds. 

If  the  consignment  cost  Harmon  $172.40,  what  was  his  gain  per  cent  ? 

2.  H.  B.  Morris,  a  broker,  bought  for  Geo.  N.  Haswell,  a  speculator,  4000  bu. 
of  wheat  at  98§0,  on  a  commission  of  £0  per  bushel.  What  was  the  broker's 
commission,  and  what  was  the  cost  of  the  wheat  to  Haswell  ? 

3.  Render  an  account  sales,  under  the  current  date,  for  sales  by  you,  a 
commission  merchant,  for  the  account  of  Gray  &  Howard,  Atlanta,  Ga. : 

50  bbl.  Standard  Flour  at  $6.50 
60  bbl.  XX  Flour  at  $5.80 
40  bbl.  Pillsbury  Flour  at  $5.20 
100  bbl.  Peerless  Brand  at  $5.50 
25  bbl.  XXX  Flour  at  $5 

Charges:  freight,  paid  by  you,  $42.10;  commission,  6%. 

4.  Render  an  account  sales.  Geo.  M.  Jenson,  Chicago,  111.,  a  commission 
merchant,  has  sold  for  R.  M.  Gilson,  Atlanta,  111.,  the  following : 

100  bu.  Potatoes  at  810 
50  bags  Onions  at  $2.60 

Charges :  freight,  paid  by  Jenson,  $4.25 ;  cartage,  $1.10 ;  commission, 
6%  ;  guaranty,  i%. 

5.  John  S.  Crane,  a  broker,  bought  cotton  for  the  Lewis  Manufacturing 
Co.,  as  follows : 

600  bales,  300,000  lb.,  at  11^0 

1100  bales,  550,000  lb.,  at  lOf  0 

400  bales,  200,000  lb.,  at  9^0 

The  broker's  charges  were  $7.50  for  each  100  bales.  How  much  did  the 
broker  receive,  and  what  did  the  cotton  cost  the  manufacturer  ? 


14  BOOKKEEPING 

6.  Render  an  account  sales,  under  the  current  date,  for  sales  by  you,  a 
commission  merchant,  for  the  account  of  Lay  &  Green,  Wooster,  Ohio : 

6  cs.,  142  doz.,  Eggs,  at  240 

4  bx.,  220  lb.,  Cheese,  at  160 

5  tubs,  250  lb.,  Butter,  at  300 

Charges:  freight,  paid  by  you,  $8.50;  cartage,  $1.50;  commission,  4%; 
guaranty,  1%.    Report  the  breakage  of  2  doz.  eggs. 

7.  Render  an  account  sales,  using  the  current  date.  Wm.  T.  Brown,  Buffalo, 
N.Y.,  a  commission  merchant,  sells  for  your  account  the  following : 

48  bbl.  Apples  at  $5.20 
100  bu.  Potatoes  at  820 

Charges:  freight,  $27.55;  cartage,  $3.10;  commission,  4%;  guaranty,  1%. 
Report  the  loss  of  2  bbl.  apples  by  decay  and  damage  in  shipping. 

8.  John  S.  Lee,  a  broker,  bought  for  you  22,500  bu.  wheat  at  91^0.  If,  at 
the  end  of  15  da.,  Lee  sold  the  wheat  at  96f0,  and  charged  J0  per  bushel  for 
buying  and  the  same  for  selling,  what  was  your  gain  ?   (Interest  not  included.) 

9.  Find  the  amount  to  be  charged  to  Reese  &  Co.  John  S.  Drake,  Cleve- 
land, Ohio,  has  purchased  for  the  account  of  Reese  &  Co.,  Indianapolis,  Ind. : 

10  hf.  ch.,  600  lb.,  Japan  Tea,  at  310 
10  hf.  ch.,  500  lb.,  Oolong  Tea,  at  420 

Charges:  drayage,  $5.50;  commission,  4%  ;  guaranty,  1%. 

10.  Find  the  rate  of  commission  and  the  amount  due  from  Lane  &  Son. 
Lakin  Bros.,  New  York  City,  have  purchased  for  the  account  of  Lane  &  Son, 
Albany,  N.Y.,  the  following : 

500  bbl.  Washburn-Crosby  Flour  at  $6.20 
100  bbl.  XXXX  Flour  at  $5.75 
250  bbl.  Peerless  Flour  at  $5.25 

Charges  :  cartage,  $13.60 ;  commission,  $199.50. 

11.  Render  an  account  sales,  under  the  current  date,  for  sales  by  H.  Rich, 
Omaha,  Nebr.,  a  commission  merchant,  for  the  account  of  Leach  &  Son, 
your  place,  as  follows  : 

250  bu.  Potatoes  at  860 

Charges:  freight,  paid  by  Rich,  $9.25;  cartage,  $2.50;  commission,  5%  ; 
insurance,  $1.90. 

12.  Render  an  account  sales,  under  the  current  date,  for  sales  made  by 
L.  R.  Howard,  commission  merchant,  Denver,  Colo.,  for  the  account  of 
Streeter  &  Co.,  your  place,  as  follows : 

100  bbl.  Baldwin  Apples  at  $6.50 
100  bbl.  Greenings  at  $5.80 


COMMISSION  PROBLEMS  15 

Charges:  freight,  paid  by  Howard,  $32.65  ;  commission,  5%;  storage,  $3. 50. 
$50  in  cash  was  advanced  by  Howard  when  the  consignment  was  received. 

13.  Harry  C.  Jones,  a  commission  merchant,  Columbus,  Ohio,  has  sold  for 
Student  the  following  consignment : 

250  bbl.  Baldwin  Apples  at  $5.80 

Render  the  account  sales,  as  follows  :  freight,  paid  by  Jones,  $37.45 ;  com- 
mission, 10%  ;  insurance,  $8.65 ;  Jones  has  already  honored  your  sight  draft 
for  $300. 

14.  Student,  a  commission  merchant,  has  sold  for  Kerr  &  Co.,  Lockport,  N.  Y., 
the  following  consignment : 

100  bbl.  Greening  Apples  at  $5.75 
200  bu.  Potatoes  at  82<£ 

Freight,  paid  by  Student,  $42  ;  cartage,  $11.60 ;  commission,  5%  ;  guaranty, 
1%  ;  cash  advanced  by  you,  $250. 

a.  Render  an  account  sales. 

b.  Make  all  your  entries  from  the  receipt  of  the  consignment  until  the 

rendering  of  the  account  sales. 

15.  Henry  S.  Jenkins,  a  commission  merchant,  28  Washington  Street, 
New  York  City,  received  from  King  &  Son,  Watertown,  N.Y.,  a  consignment 
of  3000  bu.  Potatoes.    The  potatoes  were  sold  for  73$  per  bushel,  for  cash. 

The  following  charges  were  paid  by  Jenkins :  storage,  $5.30 ;  commission, 
5%  ;  cash  advanced  to  King  &  Son,  $300. 

a.  Student,  as  bookkeeper  for  Jenkins,  renders  the  account  sales. 

b.  Make  all  the  entries  on  Jenkins's  books  from  the  receipt  of  the  consign- 

ment until  the  rendering  of  the  account  sales. 

16.  Student,  a  commission  merchant,  receives  from  James  S.  Benton, 
Minneapolis,  Minn.,  200  bbl.  Pillsbury  Flour,  to  be  sold  on  his  account. 

Before  selling  the  flour  Student  accepted  Benton's  10-day  sight  draft 
for  $500. 

The  flour  was  sold  at  $6.50  per  barrel,  cash. 

Render  an  account  sales,  as  follows :  freight,  paid  by  Student,  $68.75 ; 
commission,  5%  ;  storage,  $18.50;  cartage,  $16. 

17.  Student  sends  a  shipment  of  200  bbl.  Baldwin  Apples  to  Home  &  Co., 
commission  merchants,  56  Washington  Street,  New  York  City,  to  be  sold  for 
Student's  account. 

Make  your  entry  when  you  sent  the  apples  ;  they  cost  you  $5.20  per  barrel, 
and  you  paid  the  freight  in  cash,  $15.40. 

Make  Home  &  Co.'s  entry  when  they  received  the  apples. 

Home  &  Co.  sell  the  apples  at  $6.90  per  barrel,  cash. 

Render  the  account  sales  of  Home  &  Co. :  commission,  10%  ;  storage,  $3. 

Make  Home  &  Co.'s  entry  when  they  render  the  account  sales: 


16  BOOKKEEPING 

Make  your  entry  when  you  receive  the  returns  from  the  shipment. 
What  is  your  gain  on  the  whole  transaction  ? 

18.  Student,  a  commission-  merchant,  receives  from  H.  F.  Cleary,  Hudson, 
N.Y.,  a  consignment  of  300  bbl.  Greening  Apples. 

Student  made  the  following  sales  : 

To  John  Roach  100  bbl.  at  $5.80,  as  follows  :  cash  $300 ;  balance  on  account. 

To  James  K.  Presser  100  bbl.  at  $6.00,  as  follows :  cash  $200 ;  balance 
on  10-day  sight  draft,  which  Presser  agrees  to  accept  on  presentation.  The 
draft  is  in  favor  of  Student. 

To  Homer  E.  Brock  100  bbl.  at  $5.90,  as  follows :  he  indorses  and  passes 
to  you  Harold  Mason's  note  for  $300,  on  which  interest  at  6%  has  accrued 
for  52  da.,  and  his  check  for  the  balance. 

a.  Render  an  account  sales  :  commission,  10%  ;  freight,  $13.50  ;  storage,  $2.50. 

Send  your  check  for  the  net  proceeds. 

b.  Make  each  entry  on  your  books  from  the  receipt  of  the  consignment  to 

the  rendering  of  the  account  sales. 


"YC  45037 


54!  JT5S 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 


